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Corporate Income Tax Avoidance in the European Arena

Author

Listed:
  • Tibor Pál

    (University of Miskolc)

  • Zsófia Tóth

Abstract

According to the OECD, 4% to 10% of the global corporate income tax revenue, i.e. USD 100 to 240 billion annually, is lost due to corporate income tax avoidance (OECD, 2015). Although the existence of the issue is well-accepted by the tax policy makers of the developed world, it is extremely difficult to agree on an international tax policy standard which could reduce the vulnerability of the sovereign tax regimes. In this article, we summarize the historical background of corporate income tax avoidance, and provide evidence of its existence in the EU member states. In addition, we also examine a new international income tax model proposed by the European Commission and analyse the expected effects of the proposal onthe risk associated with tax avoidance in Europe.

Suggested Citation

  • Tibor Pál & Zsófia Tóth, 2015. "Corporate Income Tax Avoidance in the European Arena," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 11(02), pages 61-68.
    • Handle: RePEc:mic:tmpjrn:v:11:y:2015:i:02:p:61-68
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    File URL: http://tmp.gtk.uni-miskolc.hu/volumes/2015/02/TMP_2015_02_06.pdf
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    References listed on IDEAS

    as
    1. Bartelsman, Eric J. & Beetsma, Roel M. W. J., 2003. "Why pay more? Corporate tax avoidance through transfer pricing in OECD countries," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2225-2252, September.
    2. Raymond Vernon, 2001. "Big Business and National Governments: Reshaping the Compact in a Globalizing Economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 509-518, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    tax avoidance; tax reform; formulary apportionment;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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